In order to start repairing your credit and improve rating, it is important to have a basic understanding of how your rating is calculated. This in turn will help you understand what you are supposed to do and why.

While different agencies have different reporting systems, FICO is the industry standard and one which most lenders use.

Your credit score, also known as credit rating, is a number between 300 and 850 that summarizes your risk of default. If is also referred to as a FICO score simply because Fair Isaac company developed it.

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Television commercials have made us believe that there is a shortcut out of debt. But while there are many types of credit card debt elimination plans, some are good, some bad, and some are downright ugly.

Many people have fallen victim of debt elimination scams. Some debt management companies have been known to take peoples’ money and then left them hanging. Even some nonprofit debt consolidation companies have been shut down after getting caught in dishonest activities.

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Most consumers do not know that three-figure number that potentially has a six-figure impact on your life. We are talking about your credit score. And most lenders will not give it to you. They will only tell you whether you’re approved or not approved for a loan or credit card. So, how do you find out credit score, your own that is?

First of all, you should know that scores differ among the top three credit reporting bureaus, sometimes by a large margin. Why do they differ? The main reason is that different creditors report to one or two of the bureaus though some do report to all three.

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Consumers focus mostly on their credit report when you should also know how to get off Telecheck. Telecheck is one of the major check writing verification services. You know when you go to the grocery store or shopping mall and write a check? Have you encountered a cashier telling you your check was denied? It could have been Telecheck. They keep a database of names and history of check writing up to 7 years. If your name is in the Telecheck database, this can only mean you have a negative mark being reported by a business that serviced you.Businesses sign on with Telecheck to avoid fraudulent payments and risk where they might think a consumer’s check will not clear the bank. If a check does bounce, Telecheck repays the store and comes after you for payment.

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Thinking of taking legal action against debt collectors? Many people become so overwhelmed with debt we forget there are guidelines for debt collectors to follow and we can take action against these companies. 

Debt collectors are bound by the Fair Debt Collectors Act and it only takes a little education for us to become aware of just how far debt collectors are allowed to take their demands.

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Beware of credit scams. People desperate to clean their credit history have often fallen for these credit and debt scams. Your best armor against these is knowledge plus, of course, a dollop of commonsense. 

There is no quick fix to credit problems. There is no one size fits all either. Anyone who promises these is either lying or peddling an illegal plan.

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I love to watch The Suze Orman Show on TV. I love especially her advice on budgeting, mortgages, and living trusts. But she can be wrong at times (just like the rest of us). On at least two occasions she has given advice which to my opinion was not factually correct. 

Needless to say, she is savvier than I on Financial matters. That’s why she is a celebrity. But focus is mainly credit simply because this is an area in have personal experience. And this is where I’ve seen Suze give incorrect information.

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Trying to avoid foreclosure and don’t know where to turn or which steps to take? All lenders and real estate professionals will explain the best way to avoid foreclosure is preventing the filing of a Notice of Default. Lenders do not want to foreclose on your home; this means they will be out of money and settled with property that they must sell.  In the end, it will cost them more but they will file a Notice of Default to protect their interests. As soon as you know you are unable to pay your mortgage, the first thing you should do is call your lender.

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Bad credit can mean a long road with an unhealthy financial future if you don’t take care of quick. You might find it difficult to get new credit if you’ve run into financial difficulty that resulted in a bad credit history. Those prior credit mistakes can create havoc and become difficult to move past, especially when new creditors are unwilling to give you a second chance. What do you do when you need to re-establish your credit, but everyone is unwilling to take a second chance?

Your first response should be getting a secured credit card. Secured credit cards are practical options, and with so many on the internet you should review these credit card offers to see which ones will be advantageous to you. 

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